Paying my rent with HUAHUA.
I've been doing a bit of a thought experiment lately, and figured I'd spell it out in a post and see what people think. As some followers may be aware, I am currently full time crypto, and supporting my family from savings and crypto income. So, I've been thinking the last few days, how much risk I should be prepared to take chasing income.
Enter HUAHUA.
HUAHUA is a meme coin launched into the Cosmos ecosystem via airdrops a couple of month ago. It currently has a market cap of around $150 million according to the Bro_n_bro dashboard. A high staking return currently at 300% APR, and $12 million of available liquidity on Osmosis, where HUAHUA pools also earn a high APR and dual rewards in both OSMO and HUAHUA.
The price has been relatively stable lately, hovering around $0.003 each. This has me thinking, how much HUAHUA would I need to pay my rent from staking returns?
So, lets work it out.
- Currently, I pay $490 AUD per week in rent.
- Converted, this is approximately $355 USD per week.
- That work out at $18,460 USD annually.
- Earning 300% APR, I'd need $6150 worth of HUAHUA (assuming no change in APR or price)
- At current prices, that is 1.86 million HUAHUA.
To have a buffer Zone for safety and to allow for reducing APR over time (which is inevitable), I really would consider 2.5 - 3 million a more realistic number. That is nearly $10,000 USD.
So the question then becomes, can I justify risking 10% of my crypto assets on a Meme coin?
What does everyone else think? Could a position like this be considered a smart move? Or foolish and irresponsible? I am in a position, with some OSMO LP positions unlocking, to actually seriously consider making this move. The question is, should I?
Thanks for reading, let me know what you think.
Cheers,
JK.
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